Wednesday, August 1, 2012

· 1) Maruti Suzuki
approaching Vaastu consultants to solve Manesar problem – the situation rightly
requires so! The nation’s biggest automaker is facing one of the worst labor
issues in the Indian manufacturing scene. The losses is in tune of crores and
has not only affected MS, but has also made foreign investors reconsider to
enter/invest in India. Manesar’s produce – Swift & Dzire has been worst hit
with reduction in their offtake. The figures for Aug’12 would be still
shoddier! (An unconfirmed news also mentions that the sprawling 600 acres of
land on which the Manesar plant has been constructed, is said to have once
served as a Muslim burial ground. Three temples, which existed in the 600 acres
were demolished to set up the plant. – I wonder how this news have surfaced at
this point of time J )

· 2) However, the
positive for MS has been its LUV (Life Utility Vehicle) – Ertiga. It should be
better named as LSV (Life Saving Vehicle – especially for Maruti!). Ertiga has
clocked its highest offtake till date with 7091 numbers. It is growing stronger
month-on-month and we wouldn’t be surprised to see it in the Top 5 within next
2 months.

· 3) Eeco volumes have
gone down scaringly low. It is appalling to see how a vehicle grossing an
average of 4.5k numbers have come down to 930 nos! Even the A-star fares worse
than the 800 (A-star: 583 nos vs Maruti 800: 1411 nos!). The real
disappointment has been SX4 – 679 offtake for this capable product is just not
digestable.

· 4) Tata is seriously
hurt – M&M overtaking Tata for the 3rd position in the passenger
car market during June’12 is a stern indication on how Tata could lose its
position if not acted quick. However, the response from Tata is satisfactory
for the moment – Sumo Indica family & Indigo family contributing for the
majority numbers. Sumo Gold has again been a trump card for Tata in gaining the
numbers in UV segment. The hatchback & sedan market seems too volatile –
Hence, would Tata be able to sustain with the Indica & Indigo productline?
I assume not – with a new compact SUV from M&M on the cards, we wouldn’t be
shocked to see M&M permanently overtaking Tata in passenger car market. The
solidarity in SUV growth has also backed M&M as of now.

· 5) Who could have
predicted that Verna sale could be higher than Santro/Eon sales an year back!
That exactly exhibits the shift in today’s consumer preference – a product can
perform exceedingly well if it could exemplify “Value for money”. This holds true
for vehicles in all categories! – Just imagine BMW bagging over 500 bookings
for its new 3-series even before its launch.. Even Audi had achieved similar
feat with its Q3 – achieved 500 booking within 5 days of its launch.

· 6) One always wonders –
where does all these Boleros go??? That’s the power of Rural India. Bolero
never fails to impress us with its consistency. It would be the only product in
the Indian Automotive history to date to exude such popularity & acceptance
– the same is evident in its sales numbers, month-on-month!

· 7) XUV500 in Top 20?
YES! With production ramping up, don’t be surprised to see it surpass Scorpio’s
number as well. With the opening of bookings all India, the product has
garnered similar euphoria what it had achieved during its initial launch!

· 8) Indians just love
NOVELTY – don’t believe me? Then take this – 12000 bookings for the newly
launched Duster. The love for SUVs has again gripped Indian consumers – Duster
just hitting the sweet spot. The next challenge is to ramp up supply as per
demand and also expand its (Renault) dealer network.

· 10) Skoda is on a spree
to reduce its dealers stocks – the number exactly explains the point with over
50% degrowth M-o-M. However, Fabia is reeling to maintain required volumes –
not deserved for a product this well.

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